Company formation in the UK

The Private Limited Company (LTD) is similar to a Limited Liability Company (LLC) and remains by far the most common form of company in the UK.

The LTD in a few points:

• Little bureaucracy, ease of setting up and closing
• No capital required
• Ultra simplified accounting
• A relatively low corporate tax rate
• Flexibility and rules for deducting expenses for businesses

For creation:

Incorporating a company automatically triggers a series of obligations that do not apply to Partnerships. The minimum requirements for an LTD company are:

• An administrator or director must be appointed;
• An office registered in England (which will be the official address for all proceedings, the address appearing on all corporate documents and the address where the company’s books and records will be kept);
• A shareholder holding a share.

Important The difference between running a LTD and a sole trader business is not as significant as you might think. In both cases, you need to keep accounts, register for VAT if applicable, and submit your tax returns to HMRC (the UK tax authority). However, with a LTD, in the event of bankruptcy, the worst that can happen is that the company goes into liquidation and its assets are sold to pay off its debts. Your personal assets remain protected.

Advice and assistance for setting up your LTD company, with full support for all
the formalities

See our LTD formation package

The Limited Liability Partnership is the most preferable form of company in the United Kingdom for entrepreneurs wishing to do international business while optimizing their taxation.

The LLP in a few points:

• Without living in London, you have an international activity
• Very flexible structure, particularly for dividend distribution
• No minimum capital. Members will negotiate among themselves the amount of capital they wish to contribute to the partnership
• 0% corporate income tax outside UK
• Unique solutions for tax optimization while benefiting from the image of Great Britain which is not classified as a tax haven
• The LLP must keep accounting records. An auditor is only necessary if the LLP exceeds a turnover of GBP 1 million.

To put it simply:

Registering for an LLP in the UK allows you to take advantage of all the advantages of conventional offshore. For tax purposes, it is the recommended entity for an entrepreneur with commercial activities and his tax residence outside the United Kingdom. In fact, profits will be taxed exclusively on personal income in your country of tax residence according to the taxable bracket.

Which brings the British partnership to the forefront of the most attractive ways to conduct successful and profitable international business.

For creation:

The minimum requirements for a private limited company are:

• 2 partners are sufficient for the creation of an LLP (of natural or legal persons);
• At least two members must be ‘designated members’, similar to the role of director and company secretary;
• No director provided for in the LLP. The authorized partner takes over the management of the business;

Consult us to create your LLP, our advisers will respond quickly.

It is the simplest and cheapest form for freelancers / freelancers who want to start their business in the UK.

The Sole Trader in a few points:

• Simplicity and reduced maintenance cost
• If your annual turnover is less than £ 10,600 you don’t have to pay tax. If you exceed this threshold then the tax rate is 20%
• In the event of losses (as is often the case in the first years) these are deductible from past income (up to 3 years) even if they come from a different activity such as a salaried activity or real estate income.
• Possibility of deducting a large part of his costs (rent, loan, charges) when working at home and being self-employed

To put it simply:

Applying for sole trader or freelancer status is the quickest way to start your business in the UK and you can do it without being resident in the UK. However, you will need to provide Companies House with an official legal address for contacting the company and sending official documents and mail. By using our services you can benefit from an official local address which will solve this problem.

In addition, it should be known that on the same model as the micro-enterprise in France, all the profits immediately become property of the physical person. On the other hand, it operates as an unlimited risk company, if things go wrong financially, you will be personally liable for the company’s debt obligation.

Der Unterschied zwischen der Verwaltung einer LTD und einem Sole Trader (Einzelunternehmen) ist nicht so groß, wie Sie vielleicht denken. In beiden Fällen müssen Sie eine Buchhaltung führen, sich gegebenenfalls zu Mehrwertsteuerzwecken registrieren lassen und Ihre Steuererklärungen bei der HMRC (britische Steuerbehörde) einreichen. Bei einer LTD ist jedoch im Falle eines Konkurses das Schlimmste, was passieren kann, dass das Unternehmen in Liquidation geht und seine Vermögenswerte verkauft werden, um seine Schulden zu begleichen. Ihr persönlicher Besitz ist sicher.

Do you want to register as a freelancer? We take care of all formalities with the English tax and social security authorities.

What is a pre-incorporated Company?

It is specifically a Limited Liability Company (SARL), also called Limited (LTD) in the United Kingdom which is pre-created and therefore already established. This type of company allows you to start your business without having to worry about the administrative procedures prior to the creation of your business.

In which cases should you choose a pre-incorporated Company?

• If you think that your future customers and suppliers will place more trust in a company with seniority
• If you want to avoid administrative hassles
• If you want to save time by acquiring Shelf which already has an intra-community VAT number and an operational bank account

Advantages of a pre-incorporated LTD Company: Seniority and Trust

This solution gives you more flexibility in managing your cash flow, because you do not need to advance the funds corresponding to the capital.

Our firm takes care of all administrative procedures prior to incorporation in legal and tax matters and you will therefore acquire a legally constituted company, without debts, with transparent accounting.

Our pre-incorporated companies are completely flexible: you can decide to change the corporate name, to increase the capital, to specify the corporate purpose …

Contact us to view our regularly updated list of pre-incorporated companies.